Industrial and Warehouse Loans in Texas
Texas has become one of the premier industrial real estate markets in the United States. E-commerce growth, nearshoring from Mexico, and the explosion of the energy sector have driven demand for warehouse, distribution, flex, and light industrial space to historic highs — particularly in the Dallas-Fort Worth metroplex, Houston, and the I-35 corridor.
If you own, are acquiring, or are developing industrial or warehouse property in Texas, here’s your financing guide.
Types of Industrial Properties and Their Financing
Bulk Warehouse / Distribution Centers
Large single-tenant or multi-tenant warehouses, typically 50,000 sq ft and above. If leased to creditworthy tenants on long-term leases, these finance similarly to NNN retail — high LTV, competitive rates, long terms. CMBS is a common vehicle for larger deals.
Flex / Light Industrial
Multi-tenant buildings with a mix of office and warehouse space. Very common in Texas suburban markets. Strong demand from small businesses, contractors, and distributors. Good occupancy history and diversified tenant base makes these attractive to lenders. LTV up to 70–75%.
Owner-Occupied Industrial
A manufacturer, distributor, or contractor buying their own facility. This is prime territory for SBA 504 financing — 10% down, long-term fixed rate, terms up to 25 years. One of the best uses of the SBA program.
Cold Storage / Refrigerated Warehouse
Specialized industrial for food, pharmaceutical, or other temperature-controlled storage. Higher construction cost and more complex underwriting — but strong demand and limited supply make these attractive deals for experienced lenders.
Industrial Development / Build-to-Suit
Ground-up construction of industrial space for a specific tenant or speculative development. Requires a construction loan during development, then a permanent loan on stabilization.
Industrial Loan Terms in Texas
- Loan amounts: $500,000 to $50,000,000+
- LTV: 65–80% depending on occupancy, tenant quality, and loan type
- DSCR: 1.20x to 1.30x minimum
- Terms: 5 to 10-year fixed; 20–25 year amortization
- SBA 504 (owner-occupied): 10% down, 25-year term, fixed rate
- Bridge (value-add): 12–24 months, 9–13% interest-only
Value-Add Industrial: Bridge to Permanent
Buying a partially vacant flex building or a functionally obsolete warehouse? Banks won’t finance it at full value. A hard money bridge loan closes fast, funds the acquisition and any needed improvements, and gives you time to lease the property to stabilization. Once you hit 85–90% occupancy and have 12 months of income history, you refinance into conventional permanent financing at significantly better terms.
What Lenders Look For
- Clear height and loading: Functional obsolescence (low ceilings, insufficient loading docks) is a risk factor
- Occupancy: 85%+ for conventional; lower for bridge
- Lease terms: Weighted average lease term (WALT) — longer is better
- Location: Proximity to highways, rail, ports — logistics infrastructure matters
- Environmental: Industrial sites carry environmental risk — lenders require Phase I; Phase II if flagged
Finance Your Texas Industrial Property
From single-tenant warehouses in Katy to multi-tenant flex parks in Frisco, we’ve financed industrial deals across every major Texas market. Direct lender since 1998 — no brokers, no middlemen, no runaround.
Apply Now — Industrial Loan Pre-Qualification